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Google, Oracle Head To Trial As Java-Settlement Talks Fail

By John Letzing Of DOW JONES NEWSWIRES SAN FRANCISCO (Dow Jones) -- Google Inc. (GOOG) and Oracle Corp. (ORCL) failed to come to terms during a six-hour settlement conference held over the weekend and are headed to trial over their ongoing intellectual-property dispute related to Google's Android mobile software. According to court filings, Google and Oracle convened for last-minute settlement talks on Saturday, but didn't reach an agreement. A trial has been expected to begin later this month. "Despite their diligent efforts and those of their able counsel, the parties have reached an irreconcilable impasse in their settlement discussions," U.S. Magistrate Judge Paul Grewal said in an order filed Monday. "No further conferences shall be convened. The parties should instead direct their entire attention to the preparation of their trial presentations. Good luck," Grewal said. An Oracle spokeswoman declined to comment. A Google spokesman also declined to comment. Oracle sued Google in August 2010, alleging that Google's Android software infringed patents and copyrights associated with Oracle's Java technology. Google develops Android on an open source basis that uses outside engineering, and provides the software freely to device makers. According to Gartner Inc. data, Android held a 50.9% share of the worldwide smartphone market in the fourth quarter of last year, compared to 30.5% in the year-earlier period. As part of courtroom proceedings leading up to the trial, Google recently floated a proposal that would entitle Oracle to a percentage of future Android-related revenue if Google is found to infringe on Oracle patents. Android revenue would stem from related mobile advertising and software apps. Oracle has objected to that proposal in filings as inadequate. -By John Letzing, Dow Jones Newswires; 415-765-8230; john.letzing@dowjones.com